Nortel Networks Wireless Mesh Network Solution Now Generally Available; Announces New Deployment, Delivers Secure Cost-Effective Wireless Broadband Services
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[October 13, 2004]

Nortel Networks Wireless Mesh Network Solution Now Generally Available; Announces New Deployment, Delivers Secure Cost-Effective Wireless Broadband Services

DALLAS --(Business Wire)-- Oct. 13, 2004 -- Nortel Networks (NYSE:NT)(TSX:NT) has announced general availability of its Wireless Mesh Network solution, a new enhanced wireless local area network (LAN) architecture designed to go beyond traditional Wi-Fi hot spots to provide secure wireless coverage indoors and outdoors throughout an urban area or large campus.



"General availability of our Wireless Mesh Network solution is yet another step in Nortel Networks strategy to provide users with cost-effective, secure wireless broadband services across converging public and private networks," said Mark Whitton, general manager, Wireless LAN, Nortel Networks. "We continue to break new ground and lead wireless broadband evolution by providing our customers and allies with innovative technology that will help drive profits and position them to offer a compelling wireless broadband solution to enterprises and end-users alike."

Nortel Networks has completed trials and deployments of its Wireless Mesh Network solution in government, enterprise and service provider markets around the world, including the Massachusetts Institute of Technology (MIT) Media Lab and the National Taiwan University (NTU).


Data Ventures, Inc., a communications company delivering enhanced broadband connectivity to public and private communities seeking their own network solution, is deploying Nortel Networks Wireless Mesh Network solution in cities throughout the United States.

"Many urban and rural communities have expressed a need to provide their citizens with an affordable solution for wireless broadband Internet access," said Joe McCoy, chief executive officer, Data Ventures, Inc. "Nortel Networks Wireless Mesh Network technology allows us to give our customers a complete community enterprise solution that delivers secure traffic segregation and allows various departments such as police, fire and government workers to use the same network without mobility limitations. Nortel Networks was the only vendor with a solution that met all of our needs and the needs of our customers."

Comprised of Nortel Networks Wireless Access Point 7220 and Wireless Gateway 7250, Nortel Networks Wireless Mesh Network solution significantly reduces the cost of transporting high-speed wireless data from Wi-Fi networks to broadband networks. It allows enterprises or service providers to install wireless LANs in areas where it is difficult or cost-prohibitive to run cables. This approach can drastically reduce the complexity and cost of deploying a traditional wireless LAN.

Nortel Networks innovative Wireless Mesh Network solution uses wireless links to connect access points installed inside or outside to provide secure, seamless access to wireless broadband services. The solution enables seamless roaming between access points, which means that users do not lose wireless connections as they move from one access point to another. In addition, Nortel Networks Wireless Mesh solution uses the Wi-Fi 802.11b standard, allowing users with Wi-Fi enabled laptop computers or handheld computing devices to access the network without new hardware or software.

"Wireless mesh networking is emerging as a robust and adaptable technology that will enable subscribers to communicate beyond the boundaries of traditional hot spots," said Bettina Tratz-Ryan, principal analyst, Gartner, Inc. "In addition to extending the reach of wireless broadband services, wireless mesh also gives subscribers the ability to use simultaneously voice, video and interactive multimedia services in one seamless communication session. Wireless mesh topologies will be one of the driving networking architectures that will change the communications landscape by enabling innovative service bundles."

In addition to reduced capital and operating costs, enterprises such as hospitals, manufacturing facilities and corporate, retail and educational campuses can benefit from an increase in end-user productivity through expanded and secure connectivity to key data network resources. For example, the National Taiwan University has deployed Nortel Networks Wireless Mesh Network solution to support a wide range of multimedia applications and features, including Web browsing, audio and video streaming and e-mail access for wireless devices. Nortel Networks and NTU have also demonstrated advanced services over Wireless Mesh, including video streaming, Wi-Fi voice over Internet Protocol (VoIP), and seamless coverage among access points while driving at speeds up to 50 kilometers per hour.

Governments and municipalities can benefit from using Nortel Networks Wireless Mesh Network solution through increased revenue generation and heightened employee and citizen safety. For example, municipalities using wireless LAN access can stimulate business development by promoting use of seamless wireless services throughout a city. Government agencies can use wireless LAN access to improve operations and communications at military facilities, as well as to provide Federal Emergency Management Agency (FEMA) emergency response teams with near-instant wireless LAN communications at disaster sites.

Nortel Networks Wireless Mesh Network solution incorporates 'auto discovery' and 'self healing' capabilities to simplify deployment and reduce service outages by automatically reconfiguring the network as access points are added or removed. The self-organizing and RF optimization capabilities of the architecture significantly reduce the need for RF engineering or commissioning, enabling installation in any location where power is available and significantly increasing the reach of wireless LAN coverage.

The Wireless Mesh Network portfolio complements Nortel Networks award-winning WLAN 2200 Series, introduced in March 2003. The WLAN 2200 Series provides a complete, end-to-end wireless networking solution for enterprise campus environments, serving as an extension of the wired communications infrastructure.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.

Factors which could cause results or events to differ from current expectations include, among other things: the outcome of Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.

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